I found a good company going IPO next week. How can I bid for the shares? The company is underwritten by Goldman Sachs.
2007-01-14 17:51:57 · 4 answers · asked by rafflesibmnet 2 in Business & Finance ➔ Investing
Investment banks who are members of the syndicate decide how to allocate their shares. It is not done fairly.
They usually allocate the bulk of their shares to their better clients if it is a good IPO and to anyone who wants them if it is not a good IPO. Sometimes they reserve a portion of the good IPOs to be allocated by people like you. They might have a lottery to see who gets the shares.
If you contact a bank that is a member of the syndicate, they will put you on a list. You may or may not get your allocation. If it is a good IPO, then you will probably not be able to get in on it.
If you want to buy in the secondary market, then any brokerage firm can help you. However, if it is a good IPO, then the price will already have jumped up by the time you get it.
You might want to look at Ivo Welch's IPO RESOURCE PAGE before investing. There is a section on how individuals can invest in IPOs and why they are likely to get screwed.
I have a PhD in Finance -- and did my dissertation on how investment banks make money by controlling the allocation and after-market trading of IPOs.
2007-01-15 03:05:19 · answer #1 · answered by Ranto 7 · 0⤊ 0⤋
Open an account at Golman Sachs Bank with at least $1,000,000.00 USD and very nicely ask them for a few shares.
2007-01-14 19:07:28 · answer #2 · answered by Anonymous · 1⤊ 1⤋
Contact any brokerage firm,ie, Merrill Lynch, or look in the yellow pages for financial advisors or consultants, and tell them how many shares you want to purchase
2007-01-14 18:02:12 · answer #3 · answered by Tweet 5 · 0⤊ 0⤋
join their memberships so that you get pre-release information
2007-01-14 17:59:51 · answer #4 · answered by Anonymous · 0⤊ 0⤋